Diversification strategies in the pesticide industry: from seeds to biopesticides

• Main Authors: Victor Pelaez, Gabriel Mizukawa
• Format: Article
• Language: English
• Published: Universidade Federal de Santa Maria
• Series: Ciência Rural
• Subjects: agrotóxicos; sementes; biopesticidas; diversificação; crescimento
• Online Access: http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-84782017000200152&lng=en&tlng=en

ABSTRACT: The pesticide industry has undergone a diversification process led by six leading companies (Monsanto, Syngenta, Bayer, Dow, DuPont, BASF) that control roughly 68% of the world market. This growth, initiated in the second half of the 1990s, occurred through deals and acquisitions of companies from the seed and biopesticide markets. This paper analyzes these diversification strategies, which have involved a capital mobilization process based on the exploitation of economies of scope and management of complementary assets. This aims to minimize the risks of investment in consolidated markets as well as in new ones.